Does the land value count as equity? Appointment at the main bank

A friend of my parents-in-law has a construction company, he is currently building a house on the street and has already looked at the plot, he said that he doesn't see any problems there. It's all quite non-binding for now. So first the trip to the bank and then the way to the building authority. It's no use if I don't get a loan. I don't see the building authority as entirely that dramatic.

I am least worried about the connections. I have a very large circle of friends. I am a trained landscaper, my brother-in-law is a trained mason, a very good friend of ours owns a few mini excavators. A former school friend owns a crane company. I think I could cover a pretty wide network and keep the costs low. At least, that is the plan.

You don't need to prepare extensively for the first conversation. Salary statements and site plan [Grundstück] should suffice. Then it's initially only about how high the loan can be at most and what type of financing structure is suitable for you (building savings contract, annuity loan, etc.). Regarding the requirements, you will certainly intend to provide a lot of personal contributions. You should directly address how much of that will be considered as equity.

Thank you for the response. I hadn't even thought of personal contribution as equity. How is it converted? Is €30,000 realistic? I would do the exterior facilities completely myself, lay floors inside the house, paint, and I can also handle a few small things.

House bank? They know him well. A click or two, and the loan advisor has everything on his radar. Then he says, give us a self-disclosure. Income, what regularly goes out, what’s left for living? Forms for that are also online. You can already prepare that. Then he needs three pay slips. From recent times. The more current, the better. Then of course information about the property and the planned project. If he’s sharp and competent, he’ll tell you a rough figure right away. Let’s say 300, 35 years, 20 years fixed interest at such and such percent. Non-binding, verbal, but already something to start planning with. Karsten

The property could be conservatively valued at the current standard land value to roughly assess it.